If you’re a freelancer, even an experienced one, I’d bet a nickel that (a) you know that pricing your services correctly is tough, and (b) that every Tom, Dick, and Jane who call themselves “business coaches” or “freelancing coaches” have written a blog or three on how to do it.

 

My formula for setting your minimal hourly rate for freelancing or consulting services

For this formula to be useful to you, let’s define each element and see what should be in it, so nothing remains hidden.


Estimated Annual Taxes = your federal, state, and local income taxes including self-employment taxes, without forgetting to consider all your business deductions.

 

Charging by the Project

Charging by the hour has two big drawbacks. First, it sets you and your client up in such a way that your interests don’t align. As an hourly freelancer, you get paid more if you take more time to get the job done.

 

Top-Down Strategic Pricing

The most important thing when pricing your services is that you have to be solving a problem that the client wants solved.

People who need to listen to this show are entrepreneurs and freelancers